According to data from DefiLlama, the Solana network has surpassed Ethereum and Base combined in 24-hour decentralized exchange (DEX) trading volume. This milestone highlights the growing influence of Solana in the decentralized finance (DeFi) space and its position as a strong competitor to Ethereum.
Daily Trading Volume Across Solana-Based DEXs
As of January 6, daily trading volume across Solana-based DEXs neared $3.8 billion, outpacing Ethereum’s $1.7 billion and Base’s $1.2 billion in trading volume (DefiLlama). This significant increase in trading volume underscores the expanding role of Solana in DeFi and its ability to attract a large user base.
Solana Outperforms Ethereum from a Price Perspective
Since 2023, Solana has outperformed Ethereum by approximately eight times, according to data from TradingView. This substantial price appreciation demonstrates the growing confidence of investors in Solana’s potential for growth and adoption.
Solana’s Total Value Locked (TVL) Outpaces Ethereum
In 2024, Solana’s TVL rose roughly five times, from around $1.4 billion to upward of $9.5 billion (DefiLlama). This significant increase in TVL underscores the growing demand for Solana-based services and the network’s ability to attract liquidity.
Retail Traders Enter the Crypto Market Through Solana
According to Grayscale Research, retail traders increasingly enter the crypto market through Solana as speculation intensifies around Solana-based memecoins and AI agent tokens. This trend highlights the growing appeal of Solana as a platform for trading and investing in DeFi assets.
Rising Trading Volumes on Raydium
In 2024, 24-hour trading volumes on Raydium, Solana’s leading DEX, increased by more than 10 times, from around $180 million in January to more than $3 billion on December 31 (DefiLlama). This significant increase in trading volume underscores the growing popularity of Raydium as a platform for trading DeFi assets.
Raydium Beats Uniswap in Monthly Trading Volumes
In November, Raydium beat Uniswap in monthly trading volumes by roughly 30%, or approximately $30 billion (Messari Research). However, this figure reversed in December, with Uniswap’s volume reaching $92 billion compared to roughly $61 billion for Raydium.
The Success of Raydium
According to a December report by Messari Research, Raydium’s success is largely attributed to its dominance within the Solana ecosystem. The DEX consistently captures over 60% of daily DEX volume on the layer-1 blockchain network.
Memecoin Trading on Raydium
The report adds that memecoin trading has become a substantial driver of Raydium’s volume, with memecoins accounting for an all-time high of 65% of Raydium’s monthly volume in November. This trend highlights the growing popularity of Solana-based memecoins and their impact on trading volumes.
The Rise of Memecoins
Fueled by venture capital funding and political speculation, memecoins now command approximately $130 billion in market capitalization (CoinGecko). This significant increase in market capitalization underscores the growing appeal of memecoins as a speculative asset class.
Pump.fun’s Trading Volume
In November, Solana’s top memecoin platform, Pump.fun, was the eighth-highest-earning blockchain protocol, ranking just below giants such as Uniswap and Circle (the issuer of USD Coin). In the past 30 days, Pump.fun generated nearly $250 million in trading volume (DefiLlama).
The Impact of Memecoins on Solana
After bootstrapping sufficient liquidity, memecoins minted on Pump.fun are typically traded on Raydium. This trend highlights the growing importance of memecoins in driving trading volumes on the Solana network.
Conclusion
The Solana network’s growth and adoption are evident in its increasing 24-hour DEX trading volume, outperforming Ethereum and Base combined. The rise of Raydium as a leading DEX and the growing popularity of memecoins demonstrate the expanding role of Solana in DeFi and its position as a strong competitor to Ethereum.
Sources:
- DefiLlama
- TradingView
- Grayscale Research
- Messari Research
- CoinGecko
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